Alamo Group Inc (NYSE: ALG)

Alamo Group Inc. is a manufacturer of high quality purpose built industrial and vegetation management equipment. The company serves end markets such as infrastructure building and maintenance, industrial construction, public works, land maintenance, agriculture and tree care. It operates twenty seven manufacturing facilities across North America, Canada, Europe, Brazil and Australia and employs approximately three thousand eight hundred people. Its corporate headquarters are located in Seguin, Texas.

Alamo Group Inc. generates revenue from the sale of vocational products such as vacuum trucks, street sweepers, roadside safety equipment, excavators and snow removal equipment and from light machinery including tractor mounted mowing equipment, land maintenance and recycling equipment. The company also derives a significant portion of its revenue from aftermarket parts and services. Replacement parts accounted for approximately sixteen percent of total sales in recent years. Products are sold through independent equipment dealers and directly to contractors and municipalities.

The company operates through the following segments: Vegetation Management Division and Industrial Equipment Division.

• Vegetation Management Division includes the former Agricultural Division plus mowing and forestry tree care operations that were previously part of the Industrial Division and offers products such as Bush Hog and Rhino tractor powered equipment including rotary mowers, finishing mowers, flail mowers, disc mowers, front end loaders, backhoes, rotary tillers, posthole diggers, scraper blades and replacement parts; Dixie Chopper zero turn mowers; Schulte mechanical rotary mowers, snow blowers and rock removal equipment; McConnel hydraulic boom mounted hedge and grass cutters, remote control mowers, cultivators, subsoilers, self propelled sprayers and multi drive load carrying vehicles; Bomford hydraulic boom mounted hedge and hedgerow cutters, industrial grass mowers and agricultural seedbed preparation cultivators; Spearhead tractor mounted vegetation maintenance equipment including reach mowers, flail mowers and rotary cutters; Fieldquip vegetation maintenance equipment for Australian agricultural and commercial operators; Rousseau hydraulic and mechanical boom mowers sold primarily in France; SMA hydraulic boom mounted hedge and hedgerow cutters for French local authorities; Forges Gorce cutting blades supplied to internal and external customers; Morbark tree chippers, stump grinders, mulchers, brush cutters, flails and debarkers; Timberwolf commercial wood chippers sold through dealer networks; and other brands such as Terrain King, Tiger, Herder, Conver, Roberine, Votex, and related product lines.

• Industrial Equipment Division encompasses the vocational truck business and other industrial operations such as excavators, vacuum trucks, street sweepers, snow removal equipment, truck mounted attenuators, grapple trucks and loaders and provides products including Gradall excavators with wheeled, crawler and highway capable undercarriages; VacAll catch basin cleaners, roadway debris vacuum systems and sewer cleaners; Super Products truck mounted vacuum machines, combination sewer cleaners and hydro excavators with rental operations serving petrochemical clients; Rivard vacuum trucks, high pressure cleaning systems and trenchers sold mainly in France and other European, Middle Eastern and North African markets; Tenco and RPM snow removal equipment comprising truck mounted snow plows, snow blowers, dump bodies and spreaders; Wausau snow removal and ice control products such as snowplows, snow blowers, snow throwers, brooms, deicers and brine sprayers; Everest snow removal and ice control equipment including snowplows, wing systems, spreader bodies and custom engineered underground construction forms; Henke snow plows and heavy duty snow removal equipment with hitches and attachments for trucks and loaders; H P Fairfield distribution of public works and runway maintenance parts including municipal snow and ice removal equipment, salt spreaders, truck bodies, street sweepers, rotary flail and boom mowers, solid waste recycling equipment, water and sewer maintenance equipment, municipal tractors and asphalt patchers; Schwarze truck mounted air vacuum, mechanical broom and regenerative air sweepers; ODB leaf and debris collection equipment and replacement brooms for street sweepers; Nite Hawk parking lot sweepers with hydraulic designs; Royal Truck truck mounted highway attenuator trucks, cone safety and traffic control trucks; ROM industrial vacuum excavation equipment including trailer mounted and custom truck mounted units for underground utility, water and sewer, municipal and car wash markets.

Alamo Group Inc. positions itself as a leading supplier to governmental markets in the United States, a leading supplier in the U. S. agricultural market and one of the largest suppliers in Europe for its core niche product lines. The company faces competition from large national and international firms that offer broad equipment and parts portfolios as well as from many small privately held manufacturers that operate on a regional basis. Competitive factors include price, quality, availability, service and reputation. Alamo Group believes it can compete effectively by controlling manufacturing costs, delivering high quality products, innovating new designs and avoiding head to head clashes with much larger rivals.

The company sells its products through independent equipment dealers and also directly to contractors, municipalities and various governmental agencies. Its customers include farmers, ranchers, public works departments, infrastructure maintenance firms, tree care and forestry operators, and industrial users in sectors such as construction, mining and waste management.